Sound investment requires rigorous attention to fundamentals, primarily the cost and value of any given economic endeavor. While not every consumer is practiced in the requirements of accurate valuation—economic application aside, U.S. students as a whole are distinctly average in mathematics—the mechanics of valuation are routinely complexified, if not obscured, by the psychological haze through which the analyst, professional or otherwise, must pass. The task is not merely to adjudicate between numeric values. It is to navigate the gray terrain between dreams and reality.
The reality is one defined by return on investment and the sundry considerations such a calculation might include. The dream is the reason we do the calculus in the first place.Continue reading “Between Dreams and Reality: Taxi Drivers, Student Borrowers, and the Retirement Gamble”